Georgia Gulf to close Sarnia PVC resin plant
Atlanta-based Georgia Gulf Corporation has announced that it will permanently close its Sarnia, Ont.-based PVC resi...
Atlanta-based Georgia Gulf Corporation has announced that it will permanently close its Sarnia, Ont.-based PVC resin plant.
The plant, which was part of the company’s acquisition of Royal Group Technologies Ltd. in 2006, had the capacity to produce 450 million pounds of PVC resin annually, but had operated only periodically in 2008 due to decreased demand in the housing and construction markets.
“We operated the Sarnia facility as a swing plant with the intention of restarting production as soon as the markets recovered and demand improved,” said Georgia Gulf president and CEO Paul Carrico. “In light of prevailing market conditions, we have made the difficult decision to permanently close this facility in an effort to better match our supply with the realities of the marketplace.”
As a result of the plant closure, the company will shed nearly 40 jobs. Additionally, Georgia Gulf expects to record a non-cash charge of US$50 million in the fourth quarter of 2008.